The Swiss must be temporarily oversold as it is showing signs of recovery this morning in the face ofmore evidence of slowing in the Euro zone. Perhaps the Swiss is benefiting from hope that strong US data willallow other countries to borrow growth from the US off more favorable exchange rates. Until something significantchanges economically in Europe, the situation in the Ukraine ends favorably, or the Swiss regains safe havenstatus, traders should look to sell rallies expecting the down trend pattern to extend.
Technical Outlook: The market made a new contract low on the break. The daily stochastics havecrossed over down which is a bearish indication. Daily stochastics are trending lower but have declined intooversold territory. A negative signal for trend short-term was given on a close under the 9-bar moving average.The defensive setup, with the close under the 2nd swing support, could cause some early weakness. The nextdownside target is 102.17. The 9-day RSI under 20 suggests the market is extremely oversold. The next area ofresistance is around 104.25 and 105.41, while 1st support hits today at 102.63 and below there at 102.17.